Asia Joins Trend Toward Floating-Rate Bonds

Issuance at Fastest Pace on Record to Catch U.S. Demand

To take advantage of demand from U.S. investors worried about rising interest rates, Asian companies are changing the way they raise cash, selling floating-rate debt at the fastest pace on record.

Unlike traditional bonds with fixed annual interest payments, these types of notes have coupons that usually adjust every quarter to track market rates. As a result, they offer better protection from rising interest rates.